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CHAPTER 1 : INTRODUCTION
1.0 Introduction
The computing industry is experiencing and witnessing a paradigm shift in the
magnitude on how millennium computing is performed globally. The emergence of cloud
computing has drastically changed the way information technology (IT) services are used,
manipulated and operated within organizations. The primary obstacle in embracing and
migrating towards IT appreciation in pursuing excellence and productivity within the overall
business performance is non-other than the capital and operational expenditure investment to
establish IT platform infrastructure. When the cost of computing increases due to complex
information architecture and infrastructure that deters organizations from employing
advanced IT services, the emergence of cloud computing provides and offers solutions to the
problem by reducing upfront expenses of computing (Marston et al., 2011). In addition,
cloud computing services are extensively used for financial analysis, medical information and
diagnoses to online gaming. International Data Corporation (IDC) projects cloud services will
outpace traditional IT spending by 2014 (Gens, 2010).
Cloud computing services involve a complex infrastructure of software, hardware, processing
and storage integration (Maggiani, 2009). In addition, it can be consider as a relative new
form of computing where scalable, elastic IT capabilities are delivered to customers using the
Internet (Plummer, 2009). Clouds are defined as clusters of distributed computers, providing
on-demand resources and services over a network, with the scale and reliability of a data
centre (Grossman, 2009). According to Zhang and Zhou (2009), cloud computing provides an
environment to enable resource sharing in terms of scalable infrastructures, middleware and
application platforms and value-added business applications. Resources (e.g., CPU and
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storage) in the cloud model are provided as general utilities that can be leased and released by
users through the Internet in an on-demand fashion (Zhang, Cheng & Boutaba, 2010).
The primary business survival will highly dependable on its capability to balance off between
the cost and productivity to generate extensive and scalable revenue or returns. The
complexity and global competition is driving organizations to concentrate on the effort to
reduce cost, increase profitability and enhance productivity ( Misra & Mondal, 2011; Sultan,
2009; Winans & Brown, 2009). The availability of Information Technology (IT) products,
software and solutions offered by service provider made available across the globe had put
tremendous pressure on organizations to choose and adopt the newest technology which
enable them to achieve their corporate business philosophy of reducing cost, sustaining
competitive edge, and improve the end result (Demirkan et. al., 2008;Gill,2011).
Cloud Computing is an innovation where information technology services and capabilities
are integrated and delivered to an organization or individual over the internet by a centralized
provider, often for a fee (Robinson, 2009). According to Gill (2011), cloud computing is a
technology process for delivering highly scalable services enabling organizations to adapt to
changing and challenging business requirements by easily acquiring and releasing computing
services as needed.